FOR IMMEDIATE RELEASE
INCR DIRECTOR Mindy Lubber Statement on new Mercer report “Climate Change Scenarios – Implications for Strategic Asset Allocation”
The following statement was issued today by Mindy S. Lubber, president of Ceres and director of the Investor Network on Climate Risk (INCR), a network of 95 institutional investors across North America managing more than $9 trillion in assets.
“Mercer’s report lends credence to a concern that the Investor Network on Climate Risk has been voicing for years. Climate change poses real costs and risks that are material to investment portfolios of pension funds and institutions around the world.
No prudent investor can disregard a risk as great as 10 percent on portfolio performance, no matter how nontraditional the source of that risk may be. At the same time, no prudent investor can ignore the potential for low-carbon investment opportunities that could be as high as $5 trillion by 2030.
Mercer’s suggested realignment toward climate sensitive assets is smart advice for investors looking to minimize risks and benefit from climate change’s vast investment opportunities. Yet for a truly effective investment response, policy makers and regulators must ensure that investors have the information they need from companies to make prudent investment decisions. Equally important, policymakers must enact carbon-reducing policies that investors need for shifting large amounts of capital toward low-carbon technologies and away from higher-polluting technologies.
Science has already affirmed the reality of climate change, while investors have long acknowledged a need and a desire for action in order to safeguard today’s investments. The Mercer study reminds us of the urgency of the challenges before us—as it provides practical strategies and tools for fiduciaries to respond to the looming risks and opportunities."
About Ceres and INCR
Ceres is a leading coalition of investors, environmental groups and other public interest groups working with companies to address sustainability challenges such as global climate change. Ceres also directs the Investor Network on Climate Risk, a network of 90 institutional investors with $9 trillion of collective assets focused on the business impacts of climate change.